Location: Avoyelles Parish, LA | Metro: Alexandria, LA MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $107,798 | 0.92% | C |
| 3BR | $1,330 | $211,949 | 0.63% | D |
| 4BR | $1,460 | $303,360 | 0.48% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Pineville, LA (ZIP 71360) might have several valid concerns regarding the feasibility of renting out properties under Section 8. Let's address these objections with the available data.
Will FMR $950 (zip FY 2024) cover the mortgage on a $193,654 home?
The Fair Market Rent (FMR) for ZIP 71360 in fiscal year 2024 is set at $950. This figure represents the average monthly rent that a landlord could expect to receive from a Section 8 tenant. To determine if this will cover the mortgage, we need to calculate the estimated monthly mortgage payment on a $193,654 home. Assuming a typical interest rate of 4.5% and a 30-year fixed mortgage, the monthly payment would be approximately $950. However, this does not account for additional costs such as property taxes, insurance, and maintenance. Therefore, while the FMR is sufficient to cover the principal and interest portion of the mortgage, it may not fully cover all associated costs without additional income streams or savings.
Is there enough renter demand at 32.3%?
The rental vacancy rate in ZIP 71360 is 32.3%. This percentage indicates that over one-third of the rental units are vacant, which might suggest low demand. However, this metric alone does not provide a complete picture of the rental market dynamics. It is important to consider the population demographics and economic conditions. A higher vacancy rate can sometimes indicate a more competitive market where landlords need to offer better terms to attract tenants. While the 32.3% rate suggests caution, it also implies that there is room for new properties to enter the market without significantly driving down rents.
Will vouchers keep pace with $991 market rents?
The market rent for ZIP 71360 is $991 per month, slightly above the FMR of $950. The question here is whether the Section 8 voucher program will adjust to meet this higher market rate. Historically, the voucher amount has been adjusted annually based on local housing market conditions. If the local housing authority adjusts the voucher amounts to match the $991 market rent, then the gap between the FMR and the market rent will be closed. However, if adjustments are delayed or do not fully align with market rates, landlords may face a shortfall. It is advisable to monitor local housing authority announcements and trends in voucher payments to ensure alignment with market rents.
In summary, while the FMR of $950 covers the mortgage principal and interest for a home valued at $193,654, it may not cover all expenses. The rental vacancy rate of 32.3% suggests a cautious approach but does not necessarily mean low demand. Lastly, the alignment of voucher payments with the $991 market rent will depend on timely adjustments by the housing authority. These points highlight the need for careful financial planning and ongoing monitoring of local market conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.